First-time home buyer guide
Guides First Time Home Buyer
Enter your mortgage details in our closing costs calculator to get an estimate of the fees you’ll pay at closing. The calculator breaks your closing costs down into five categories: property-related fees, loan-related fees, mortgage insurance fees, property tax and homeowners insurance, and title fees. To learn more, be sure to read mortgage closing costs explained.
How we got here
How do you calculate closing costs?
The closing costs calculator clears up one of the most confusing steps in the mortgage process, showing you at a glance the estimated total closing costs. It also gives an itemized list of the closing cost fees and services.
You can use it:
- Before shopping for a home. As you begin budgeting and saving, learn what your closing fees might be and where you’ll find potential savings.
- When shopping for a mortgage lender. Lenders must submit their offers to you in the form of a Loan Estimate that shows your closing costs; use this calculator to understand the terminology, compare your offers and choose the best one.
- When shopping for a home. While you’re waiting for your dream home to come on the market, you can be researching and shopping for inspectors, title agencies, etc., so you’ll be ready to engage them when you have an accepted offer.
What are the closing costs on a $300,000 house, for example? Finding out with this calculator is easy. Enter three numbers:
- A home price
- Your estimated down payment
- Your mortgage interest rate
If you’re using a mortgage broker, click that button, too, so the broker’s commission is included. (A broker’s commission is not technically a closing cost, but we think it’s important to see most of your related costs.)
Click “next” to see your results.
How to interpret your results
Cost estimation. The top result shows total closing costs, in dollars and as a percentage of the mortgage’s value (usually between 2% and 5%). You’ll also see total costs for the services you can shop for and which prices are fixed.
Breakdown of costs. The next section shows you a breakdown of prices for 13 typical costs. Those include work done by the lender to evaluate and process the loan, by professionals like an appraiser and perhaps a surveyor to assess the property, and other fees, for things like mortgage insurance, a title search, property tax and homeowners insurance.
Services you can shop for. The “Breakdown of costs” section also shows which services you can shop for: Under each fee you’ll see a note saying “Fixed” or “Shop.”
Refine your results. The closing cost calculator’s default setting offer estimates for many of the fees. For example, the calculator’s default price for an appraisal is $350. But appraisal fees vary and might be $300 or $450, depending where you live. If you know the exact cost of a service or product you’ll use, type it into the calculator to improve your results.
Why calculating closing costs helps you
This closing costs calculator lets you see an estimate of costs without waiting to apply for a mortgage. Having an estimate while you are saving, planning and shopping for a home puts you in the driver’s seat by giving you time to plan how to you’ll pay and potentially avoid the added costs of a no-closing costs mortgage.
Home shoppers know they need to save a lot for their down payment. However, you may be taken by surprise by the bill for thousands of dollars in closing costs that’s due when you sign your mortgage contract.
When you apply for a mortgage, the lender gives you two official notices of your loan’s closing costs:
- The Loan Estimate is given to borrowers within three days of applying for a mortgage.
- The Closing Disclosure, which has the final numbers, is delivered up to three days before closing.
Look at the services in your results that say “Shop” under them. It might be possible to save hundreds of dollars, particularly on the most expensive items, such as title insurance and settlement services.
You can learn more here about how to shop for a better price.
Closing costs 101
What are closing costs?
Closing costs are fees for the many services, taxes and insurance required for the lender to evaluate the home you’re buying and process and finalize your mortgage. Some closing costs outlined in this calculator, like property tax, a mortgage broker’s commission and homeowners insurance premiums, are self-explanatory, while others can sound somewhat mysterious. What’s a loan origination fee, for example? What is title insurance? This calculator briefly explains each one.
Your closing costs can be included in the mortgage. This is known as a no-closing costs mortgage.
The pro: You avoid having to save thousands more on top of your down payment.
The con: Your monthly payment is higher, as is the overall cost of your home loan.
How it works: Your lender pays your closing costs in exchange for either charging you a higher interest rate or adding the fees into your loan amount.
Seller-paid closing costs
Sellers who are highly motivated to make a deal sometimes agree to contribute money toward your closing costs. But, when housing inventories are low and buyers are competing for homes, sellers may be less likely to make concessions.